A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory policy for its 1-irons, which have the following characteristics:- Demand (D) = 2,000 units/year, normally distributed- Standard deviation of weekly demand = 3 units- Ordering cost = $50/order- Holding cost (H) = $6.00/unit per year- Desired service level = 90%- Lead time (L) = 5 weeksIf the company uses a periodic review system, what should the review period (P) be (in weeks)? Pick the closest answer. **Inventory Management Question**Suppose the company holds 20 units in safety stock and uses a two-week ordering period. It is time to place an order, and the manager counts a current inventory position of 100 units. How many units should be ordered?- Nothing- Between 25 and 75 units- Between 75 and 125 units- Between 125 and 175 units- Between 175 and 225 units- More than 225 unitsThis question is designed to test understanding of inventory management concepts such as safety stock and order quantities in the context of a specific ordering period.

Economic order quantity is the optimal quantity level that the firm must buy to decrease the cost of inventory.

Answered: Suppose the company holds 20 units in…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Average demand per day ( ) is 15 units, with a std. dev. of 5 units ( ). Lead time (LT) is 25 days (constant). Find the safety stock (SS) and reorder point (ROP) for z=3. Group of answer choices SS = 225 units, ROP = 600 units SS = 75 units, ROP = 450 units SS = 75 units, ROP = 375 units SS = 375 units, ROP = 750 units SS = 450 units, ROP = 75 units
Mr. Beautiful, an organization that sells weight training sets, has an ordering cost of $40 for the BB-1 set (BB-1 stands for Body Beautiful Number 1). The carrying cost for BB-1 is $5 per set per year. To meet demand, Mr. Beautiful orders large quantities of BB-1 7 times a year. The stockout cost for BB-1 is estimated to be $50 per set. Over the past several years, Mr. Beautiful has observed the following demand during the lead time for BB-1: Demand During Lead Time 40 50 60 70 80 90 The reorder point for BB-1 is 60 sets. What level of safety stock should be maintained for BB-1? The optimal quantity of safety stock which minimizes expected total cost is Probability 0.1 0.2 0.2 0.2 0.2 0.1 sets (enter your response as a whole number).
Abey Kuruvilla, of Parkside Plumbing, uses 1,350 of a certain spare part that costs $24 for each order, with an annual holding cost of $25. Part 2 a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your responses to two decimal places). Order Size Total Cost ($) 25 enter your response here 40 enter your response here 50 enter your response here 60 enter your response here 100 enter your response here b) What is the economic order quantity?units (round your response to two decimal places).
Saché, Incorporated, expects to sell 2,030 of its designer suits every week. The store is open seven days a week and expects to sell the same number of suits every day. The company has an EOQ of 1,450 suits and a safety stock of 290 suits. Once an order is placed, it takes three days for Saché to get the suits in. How many orders does the company place per year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Assume that it is Monday morning before the store opens, and a shipment of suits has just arrived. When will Saché place its next order? multiple choice Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Walmart experiences a demand of 5 units per day for its LED TVs. The lead time for re-stocking LED TVs is 10 days. What is the Re-Order Point? (Assume that the demand and lead time are known with certainty, that is, they are not uncertain) 50 units 2 units 50 days 2 days
A company has a chance to reduce their inventory ordering costs by placing larger quantity orders using the discount schedule below. What should their optimal order quantity be if this company purchases this single inventory item with an e-mail ordering cost of $4, an annual holding cost rate (per unit) of 2% of the price/unit, and an annual demand of 10,000 units? Order quantity (units) Price/unit ($) 0 to 2,499 1.20 2,500 to 3,999 1.00 4,000 or more 0.98
Need in Detail (No AI)
When an firm put aside some extra inventory that serves as an insurance against flucation in demand is called Wastage Inventory O Minimum Level Safety Stock EOQ
One of the assumptions of the basic fixed-order-quantity inventory model is "lead time (time from ordering to receipt) is constant." True or False
Abey Kuruvilla, of Parkside Plumbing, uses 1,230 of a certain spare part that costs $24 for each order, with an annual holding cost of $25. Part 2 a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your responses to two decimal places). Order Size Total Cost ($) 25 enter your response here 40 enter your response here 50 enter your response here 60 enter your response here 100 enter your response here b) What is the economic order quantity? units (round your response to two decimal places).
3. Peter's order quantity for tocino is 5,000 kilos. Peter maintains a safety stock of Tocino at 500 kilos, and its order point is 1,500 kilos. What is the lead time, assuming daily usage is 50 kilos?
Abey Kuruvilla, of Parkside Plumbing, uses 1,250 of a certain spare part that costs $26 for each order, with an annual holding cost of $27. a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your responses to two decimal places). b) What is the economic order quantity? units (round your response to two decimal places).

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